Are the Crawlspace Medic franchisee's obligations under the agreement binding on their successors and assigns?
Crawlspace_Medic Franchise · 2024 FDDAnswer from 2024 FDD Document
- 6.1. This Agreement shall run with the land and be binding upon the parties hereto and their heirs, successors, assigns, executors and administrators and representatives. The rights and obligations herein contained shall continue, notwithstanding changes in the persons or entity that may hold any leasehold or ownership in the land or building of which the Premises forms a part.
Source: Item 22 — CONTRACTS (FDD page 42)
What This Means (2024 FDD)
According to the 2024 Crawlspace Medic Franchise Disclosure Document, the franchise agreement runs with the land and is binding upon the parties and their heirs, successors, assigns, executors, administrators, and representatives. This means that the obligations and rights outlined in the agreement will continue regardless of changes in ownership or leasehold of the property where the Crawlspace Medic franchise operates.
This provision ensures that the terms of the agreement remain enforceable even if the property is transferred or inherited. For a prospective Crawlspace Medic franchisee, this clause indicates that if they sell or transfer their franchise, the new owner will be bound by the original franchise agreement. Similarly, if the franchisee passes away, their estate will be responsible for upholding the agreement's terms.
This type of clause is relatively standard in franchise agreements, as it protects the franchisor's interests and ensures consistency across the franchise system. However, franchisees should carefully review all terms of the agreement to fully understand their obligations and how they might affect future transfers or changes in ownership.